In: Accounting
Conduct an internet search to identify a minimum of three types of non-assurance services that auditors can provide. Discuss the nature of those services. In your discussion, include whether the services can be conducted along with assurance services to the same client without impairing the auditor’s independence.
Different types of non assurance services that auditor can provide:
1. Related services - related services comprises of reviews, agreed upon procedures and compilations. Out of these review involves giving assurance (i.e. negative assurance) and other two are non assurance services. Therefore only these two are discussed below-
Nature of services | agreed upon services | compilations |
Level of assurance | no assurance | no assurance |
Report provided | factual findings of procedures | identification of information compiled |
2. Accounting and book keeping services - under this, client is helped to maintain records of various transactions and financial information in accordance with the applicable financial reporting framework and accounting standards. 3. Taxation services - under this, client is assisted to file tax returns and it doesn't involve providing assurance. Under this, various tax provisions are considered to see that the appropriate tax amount is paid to the tax departments.
Apart from these non assurance services there are many other non assurance services such as internal audit, design and implementation of any financial information system, actuarial services, management consulation services and others.
Out these non assurance services, tax services can be conducted ( subject to certain limited exceptions) along with assurance services to the same client without impairing the auditors independence. Where as the other non assurance services ( such as accounting and book keeping, management services and actuarial services) are specifically prohibited.